SAVVY Australians are taking advantage of record-low interest rates by scaling ahead by more than two years on their home loans and tucking away healthy savings.

While the appetite for credit growth has increased — fuelled by investor housing credit — the Reserve Bank of Australia said many consumers are optimising the low-rate environment to make significant headway into their home loan debt.

Households balance sheets have also improved with the saving ratio remaining high at around 10 per cent — and the net worth per household has risen by four per cent in the past 12 months.

In the RBA’s biannual Stability Review, released this week, the central bank said frugal Australians are stashing more than two years’ worth of repayments into their mortgage offset and redraw accounts.

Savers ... the Reserve Bank of Australia’s biannual Stability Review shows customers are making the most of low interest rates while also stashing cash away. Picture: Supplied.Source:AP

The central bank said this amount has risen to around 15 per cent of outstanding balances.

“Prepayment rates and the proportion of borrowers ahead of schedule on their mortgage repayments are also high according to liaison with banks,’’ the RBA review said.

Getting ahead ... the Commonwealth Bank says more than 76 per cent of their customers are making more than the minimum monthly repayments on their loans.Source:Supplied

“Part of this prepayment behaviour has been due to some banks’ systems not automatically changing customers repayment amounts as interest rates have declined, while in many cases households have not actively sought to reduce their repayments.”

ING Direct’s manager of mortgage products Loren Wakeley said a significant portion of their home loan customers have stretched ahead on their mortgages due to low rates.

“About 15 per cent of our book is ahead of their repayments by the same rate (two years’ worth of repayments),’’ he said.

“Since 2012 it has been increasing quite dramatically, it was about 13 per cent back then.

“We have a portion of our customers who like to pay more on a monthly basis and whenever rates reduce we leave their repayments where they are so each time rates reduce they are paying more off their loan.”

Cashed up ... mortgage customers are keeping their repayment levels the same regardless of any rate moves resulting in them getting further ahead on their loans. Picture: Thinkstock.Source:Getty Images

The RBA has kept the cash rate on hold at 2.5 per cent since August last year and experts say there may be no rise until mid-2015.

Data from financial services firm Canstar shows on a 30-year $300,000 home loan the current average standard variable home loan rate is 5.4 per cent and the minimum repayments are $1685 per month.

The total cost of the loan would be more than $600,000 if paid off over 30 years.

For a 30-year $500,000 loan the average standard variable rate is 5.07 per cent and the minimum repayments are $2706.

The total cost of the loan would be more than $975,000 if paid off over 30 years.

The nation’s largest home loan lender, the Commonwealth Bank, said more than 76 per cent of their customers are making more than the minimum monthly repayments on their loans.

Only a tiny portion — about 0.6 per cent of their home loan customers are more than 90 days behind in their repayments.